Concurrent Retirement And Disability Pay, You’ll Be Better Off With Va Benefits!

The concurrent retirement and disability pay is specifically for the army personnel who are receiving the Veteran Affair's benefits and at the same time the military retirement benefits. However, since 1st January 2004, the laws have been modified. Now, to get the Concurrent retirement and disability pay (CRDP) benefits, one has to meet certain standards of disability.

With the introduction of new law, it’s been codified that a person cannot receive both the benefits simultaneously- that is the retirement pay and the VA facilities. However, there are some certain criteria to get these benefits. A retired army person has every right to receive the concurrent retirement and disability pay only if the disability mode is more than 50% and that he or she has served the military for at least 20 years. The law is found quite confusing and then there are other standards to be fulfilled to get the CRDP.

The New CRDP states that a certain amount of money has to be deducted from the account of the retired person since he is receiving the VA pay too. There is one option too and that is either to carry on with the retirement pay or to go for VA benefits. In this choice, many persons switch over to VA benefits since they are not taxable but the military retirement money is taxable. And they are better off with the option of the VA benefits since they would be receiving the amount with tax free.

On the contrary, the CRDP is computed by the Defense Finance and Accounting Service (DFAS) based on your VA pay scale and other factors. To get a clear view of your CRDP, you can visit your nearest DFAS office and can inquire all about the codes and payment scale. The bottom line is that the CRDP income that you will receive is taxable and a certain amount of tax will be deducted from your income.